Bedford Buy-to-Let Guide

According to housesforsaletorent.co.uk, the average monthly rent in Bedford is £1,256 PCM. This is very similar to the overall UK average rent of £1,262 PCM as per the HomeLet Rental Index.

A BBC article from 2023 reported that rents had risen by 10.5% in Bedford in one year. This significant growth reflects the current supply-demand imbalance in the private rental market, which is felt across the UK.

The University of Bedfordshire has a campus in Bedford, so investors could also target the student/young professional demographic as an investment strategy.

Bedford is 46 miles north-northwest of London and 65 miles southeast of Birmingham.

The town of Kempston is included in Bedford’s built-up area, along with the village of Biddenham to the west, which is popular with commuters due to its proximity to Bedford train station. In the east, Goldington is a sought-after urban area.

Outside of the built-up area and further out from central Bedford, there are more rural villages in the Borough of Bedford, such as Oakley, Clapham, and Elstow, among others.

Kempston

Average Property Prices in Kempston

The average property price in this area is £322,947.

Average Rental Yield in Kempston

The average rental yield in this area is 4.77%.

Average Property Prices in Oakley

The average property price in this area is £441,533.

Average Rental Yield in Oakley

The average rental yield in this area is 3.44%.

(Average property prices were taken from Rightmove in early 2024; gross rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Bedford to Invest in?

Overall, Bedford is a pricey area compared to UK average property prices, so it may be hard to find a good deal.

Kempston offers the best rental yield of the places we looked at, at 4.77%. This is a decent yield, but other UK areas with more affordable property can offer much higher yields for property investors.

Across the UK, the current supply of available rental properties is not enough to keep up with demand, and a boost of activity in the build-to-rent sector could help fill the gap. New-builds are popular with both tenants and investors, making them an attractive prospect for buy-to-let investment.

Central Bedfordshire Council is working to deliver more newly built housing for the local community through initiatives and regeneration schemes such as the Central Bedfordshire Local Plan.

Private developers also target the area, with some new-build projects occurring in and around Bedford, often consisting of semi-detached and detached houses making new estates.

More Information: Get further insights into the UK market with our latest buy-to-let guides, covering topics like new-builds in Wallasey to the best UK investment opportunities!

When considering buy-to-let investments, despite the high cost, Bedford could stand out as a compelling option compared to other regions across the UK.

With its strategic location and ongoing regeneration efforts, Bedford offers investors a promising opportunity to achieve solid returns on their investment. Additionally, the town’s proximity to key employment centres and educational institutions enhances its appeal to tenants, ensuring a steady demand for rental properties.

However, compared to regions outside the London buy-to-let market, its higher price point could alienate some investors.

It is possible to gain higher rental yields and more robust capital growth without breaking the bank.

For example, buy-to-let properties in Liverpool and Manchester often see below-average property prices and yields exceeding 8%, depending on where you look.

The predicted rise in property value in the East of England makes it attractive for buy-to-let investors looking to eventually sell their property for significant gains. However, Savills suggests that the North West is also expected to see an even higher growth of 20.2% in the same period.